Below are details and explanations about some of the common terms you need to understand in order to make informed decisions–we’ll also determine if there is a difference between credit repair and credit restoration.
When you search for any information about credit repair, including credit repairs Houston Texas, a number of options show up. It can be quite daunting to sift through all that information, and you’ll probably wonder, how much does credit cleaning cost, and what does it entail? If you haven’t noticed already, there is a lot of different terminology in the industry such as “credit repair,” credit cleaning,” “credit restoration,” and “credit building” that may confuse you even further.
Credit restoration and credit repair are essentially the same thing. Credit restoration tends to be a term that most companies offering credit repair services use to describe their services. Credit repair or credit restoration is the process of disputing inaccurate negative items on a consumer's credit report with the intent of removing these items altogether and boosting credit scores.
It is important to note that credit restoration is not the same as credit building. Credit building is not about disputing and removing items from the consumer's credit report, but is the process by which a person improves their credit by taking proactive steps to improve their financial situation, such as:
Paying down debt
Making past-due payments
Improving their credit utilization rate
Making current and future payments on time
Put simply, the credit repair or credit restoration process involves fixing mistakes made in the past, whereas the credit building process focuses on current and future financial decisions that help your credit score grow. Credit repair experts, such as those at The Phenix Group, can help you determine which processes are best for your unique credit health.
Credit counseling is usually offered by nonprofit organizations. While credit repair or restoration companies charge a fee in exchange for the services they provide to consumers, services from credit counseling organizations are usually free. Their purpose is to help consumers improve their financial situations with strategies such as debt management and credit education. So, if you’re working with a credit counselor, you’ll receive consultations without having to pay a fee for their assistance.
No–the terms “credit repair” and “credit restoration” refer to the same process. They both involve removing negative items from a credit report to improve a credit score. The term “credit restoration” most often refers to the services offered by a company in exchange for payment. “Credit repair” can be used in the same context, but credit repair doesn't have to cost money if you do it yourself.
In fact, according to the Credit Repair Organization Act (CROA), a credit restoration company needs to notify its consumers that they may, on their own, notify a credit bureau in writing to dispute the accuracy of items on their credit report.
The Fair Credit Reporting Act (FCRA) gives every individual the right to dispute the accuracy of items contained in their credit report. Credit repair or credit restoration is covered by federal law and is legal in all fifty states within the U.S. The CROA was enacted in 1996, and it governs and regulates the companies that provide credit restoration services. As long as the companies comply with CROA regulations, they are legitimate.
Credit restoration and credit repair are the same process that involves the removal of negative items from a credit report to improve a credit score. “Credit restoration” is a term that was introduced by companies offering credit repair services, and is available through reputable, professional credit repair companies, like The Phenix Group, right here in Houston.
A person’s credit can significantly affect his or her major financial decisions–having good credit makes it easier to get loans, enjoy lower interests, and work on better terms. But financial challenges can take a toll on one’s credit score. If you are wondering how to rebuild credit and how to improve your score, you are in the right place.Read More
Although settling a debt clears away the burden of overdue unpaid bills, it can be bad for your credit score. While it brings your account’s balance back to zero, your credit report will show it was settled for less than the total amount owed or agreed upon, which would prompt a negative mark.Read More
Having your credit report examined is about as much fun as having a root canal—every single detail of every financial account you’ve had in the last ten or fifteen years is likely to be there. Many people who apply for loans are turned down due to a poor credit history, which includes things like missed payments or accounts in collections. Some may not be aware that the reason they have a low credit score is that there are inaccuracies on their report.Read More
Credit scores are highly influential in the financial decisions we make in our lives–a bad credit score makes it difficult to get a loan, a credit card, insurance, or property.Read More
Most everyone who has ever had bad credit has sought for improvement tips to remedy their situation. Why? A poor credit report caused by erroneously input items poses a lot of damage and places you in a bad light. The current state of your credit historyRead More
We Fix Bad Credit